Business Aviation
Bombardier Closes 250 Million Bond Offering Advancing Debt Strategy
Bombardier completes $250M bond offering to refinance debt, reduce costs, and extend maturities amid credit upgrades and strong backlog.
Bombardier Inc., a leading Canadian aerospace company, has recently completed the offering of an additional $250 million in 6.75% Senior Notes due 2033. This move marks a pivotal milestone in the company’s ongoing financial restructuring and debt optimization strategy. Priced at 103.500% plus accrued interest, the bond issuance demonstrates strong market confidence in Bombardier’s financial trajectory and operational execution.
The proceeds from this offering are earmarked for the redemption of higher-cost debt, specifically the complete payoff of $166.29 million in 7.125% Senior Notes due 2026 and approximately $84 million of 7.875% Senior Notes due 2027. This debt restructuring not only reduces Bombardier’s overall cost of capital but also extends its debt maturities, positioning the company for long-term financial stability. The transaction comes on the heels of Bombardier’s robust operational performance and a record $16.1 billion backlog, signaling an optimistic outlook for the company’s future.
Investor confidence in Bombardier’s strategic direction is further underscored by the successful pricing of the notes above par value and recent credit rating upgrades. These developments collectively highlight the effectiveness of Bombardier’s disciplined approach to capital allocation, debt reduction, and operational excellence.
Bombardier’s path to financial stability has been marked by significant challenges and a determined turnaround effort. In the late 2010s and early 2020s, the company grappled with high leverage and operational setbacks that threatened its viability. The period was characterized by mounting debt and uncertainty, prompting urgent action from management and stakeholders.
A turning point came in early 2022 when Bombardier announced a $400 million aggregate paydown of its 7.500% Senior Notes, funded entirely from operating cash flows. This decisive move signaled a shift toward financial discipline and set the stage for a systematic approach to balance sheet optimization. The company’s leadership, overhauled in 2021, implemented operational improvements and strategic focus that would underpin the transformation.
Since its peak debt position of approximately $10.1 billion in 2022, Bombardier has consistently reduced its gross debt to $5.6 billion by 2025, a nearly 45% reduction over three years. This deleveraging has been powered by strong operational cash generation and a clear focus on sustainable leverage ratios. The new management team’s ability to meet operational and financial targets for three consecutive years further demonstrates the effectiveness of their strategy.
The $250 million offering of 6.75% Senior Notes due 2033 was structured as an addition to the existing $500 million series issued earlier in May 2025. Priced at 103.500% plus accrued interest, the transaction reflects robust investor demand and confidence in Bombardier’s creditworthiness. Institutional investors’ willingness to pay a premium underscores the appeal of the company’s improved risk profile.
The offering closed on September 18, 2025, and the proceeds are allocated to redeem all remaining 7.125% Senior Notes due 2026 and a significant portion of the 7.875% Senior Notes due 2027. By combining the new issuance with existing notes, Bombardier enhances liquidity and market acceptance, creating a single, larger, and more attractive debt instrument for investors. The redemption of these higher-coupon notes is scheduled for early October 2025, ensuring a swift transition to a more favorable debt structure. This sophisticated financial engineering addresses multiple objectives: lowering interest expenses, extending debt maturities, and consolidating the company’s capital structure for greater efficiency.
“The premium pricing achieved in the offering reflects market recognition of the company’s improved credit profile and the attractiveness of the 6.75% coupon in the current interest rate environment.”
The primary rationale behind the September 2025 bond offering is to reduce interest expenses by replacing higher-coupon debt with lower-cost financing. By refinancing the 7.125% and 7.875% notes with 6.75% securities, Bombardier achieves immediate annual interest savings and extends its debt maturity profile, thereby reducing refinancing risk for the next eight years.
This refinancing results in meaningful improvements to Bombardier’s capital structure. The company’s average coupon on long-term debt has decreased by 11 basis points, and the average maturity has been extended to 4.7 years. These changes directly enhance cash flow margins and debt service coverage ratios, providing a stronger foundation for future growth and investment.
The timing of the offering was strategically chosen to coincide with strong operational performance and favorable market sentiment. The ability to price the notes above par value is a testament to Bombardier’s success in rebuilding investor trust and establishing itself as a credible borrower. The transaction also supports the company’s broader capital allocation framework, which emphasizes debt reduction while maintaining liquidity for operational and strategic needs.
The progress made by Bombardier has been formally acknowledged by major credit rating agencies. S&P Global Ratings upgraded Bombardier’s issuer credit rating to ‘B+’ from ‘B’, and raised its issue-level rating on the company’s unsecured debt, citing continued deleveraging and ample liquidity. The agency highlighted Bombardier’s growth in higher-margin aftermarket services and the sustainability of its $14.9 billion backlog.
Moody’s Ratings also upgraded its outlook on Bombardier to positive, reflecting confidence in the company’s ability to sustain its financial improvement trajectory. These upgrades enhance Bombardier’s access to capital markets and are expected to lower its future borrowing costs, as many institutional investors have minimum credit rating requirements for their portfolios.
Market reception to Bombardier’s debt securities has been notably positive, as evidenced by the successful pricing of multiple offerings above par value. The September 2025 transaction’s pricing at 103.500% represents strong institutional demand, especially remarkable given the broader economic uncertainty and challenges facing the aerospace sector in 2025.
“The combination of upgrades from both major rating agencies provides validation of management’s strategic approach and enhances the company’s access to capital markets at favorable terms.”
Bombardier’s financial restructuring is underpinned by robust operational performance. In the second quarter of 2025, the company reported total revenues of $2.0 billion, with adjusted EBITDA of $297 million and EBIT of $205 million. These results reflect Bombardier’s ability to convert revenue growth into sustainable earnings. The company’s backlog reached a record $16.1 billion as of June 30, 2025, driven by a landmark Orders of 50 firm aircraft and 70 options from a new customer, along with a comprehensive maintenance services partnership. This backlog growth represents the highest single-quarter business jet unit order volume in more than a decade, underscoring continued strong demand for Bombardier’s products.
Delivery performance has also been consistent, with 36 aircraft delivered in Q2 2025 and 59 in the first half of the year. The company remains on track to meet its full-year delivery guidance of over 150 aircraft. Services revenue, a key driver of margin expansion, reached $590 million in Q2, up 16% year-over-year, reflecting the growing importance of recurring, high-margin aftermarket activities.
The global aviation sector is experiencing a robust recovery, with industry revenues projected to surpass $1 trillion in 2025. Business aviation, in particular, has shown strong momentum, with flight activity up approximately 3% year-over-year in the first half of 2025, and global activity remaining more than 10% above pre-pandemic levels.
New business jet deliveries are gaining pace, with 455 recorded in the first half of 2025 and projections for 820 total deliveries by year-end, an 8% year-over-year increase. The market has shifted toward sustainable growth, with pre-owned aircraft inventory increasing only modestly, supporting a seller-favored environment.
Despite these positive trends, the industry faces ongoing challenges, including Supply-Chain disruptions, labor shortages, and inflationary pressures. The aviation debt market has also evolved, with wider credit spreads but increased opportunities for borrowers with strong credit profiles, such as Bombardier. The recovery in aviation asset-backed securities markets further contextualizes the favorable reception of Bombardier’s corporate debt offerings.
While Bombardier’s financial and operational improvements provide a strong foundation, several risks remain. Macroeconomic uncertainty, the cyclical nature of business aviation demand, and interest rate volatility could impact future performance. Supply chain disruptions continue to pose operational risks, potentially affecting production capacity and delivery schedules.
Credit rating agencies have noted that a sustained increase in leverage or a decline in backlog could trigger rating downgrades, while further improvements could result in additional upgrades. Market competition, evolving customer demand, and reliance on aircraft deliveries also present ongoing challenges. Nonetheless, Bombardier’s substantial liquidity, extended debt maturity profile, and strategic focus on high-margin services provide resilience and flexibility to navigate these risks.
The company’s growing services business, recurring cash flows, and expanding global service network offer stability and growth prospects even in the face of potential volatility in new aircraft demand. These factors, combined with a strengthened balance sheet, position Bombardier to capitalize on industry trends and pursue strategic opportunities as they arise. Bombardier’s successful $250 million bond offering is a testament to its comprehensive financial transformation and renewed market confidence. The ability to price the notes above par value and secure favorable terms reflects the company’s effective execution of its debt optimization strategy and the strength of its operational performance.
Looking ahead, Bombardier is well-positioned to leverage its improved financial flexibility, strong backlog, and expanding services business to drive sustained growth and profitability. The company’s proactive approach to debt management, combined with a favorable industry backdrop, supports its long-term objective of financial stability and strategic growth. With continued focus on innovation and operational excellence, Bombardier stands poised to maintain its leadership in the global aerospace industry.
What was the purpose of Bombardier’s $250 million bond offering? How did the market respond to the bond offering? What impact have recent credit rating upgrades had on Bombardier? What are the main risks facing Bombardier? How is Bombardier positioned for the future? Sources: Bombardier Official Announcement
Bombardier Successfully Closes $250 Million Bond Offering, Advancing Strategic Debt Optimization
Historical Context and Financial-Results Transformation
The September 2025 Bond Offering Details
Strategic Rationale and Financial Impact
Credit Rating Improvements and Market Reception
Bombardier’s Operational Performance Context
Industry Context and Market Conditions
Risk Considerations and Future Outlook
Conclusion
FAQ
The proceeds are being used to redeem higher-cost debt, specifically the 7.125% Senior Notes due 2026 and a portion of the 7.875% Senior Notes due 2027, thereby reducing interest expenses and extending the company’s debt maturity profile.
The notes were priced at 103.500% plus accrued interest, reflecting strong investor demand and confidence in Bombardier’s improved creditworthiness and financial strategy.
Upgrades from S&P Global Ratings and Moody’s have validated Bombardier’s financial turnaround, lowered its borrowing costs, and expanded its access to institutional investors.
Key risks include macroeconomic uncertainty, supply chain disruptions, interest rate volatility, and competitive pressures in the business aviation market.
With a record backlog, robust services revenue, improved liquidity, and a more stable capital structure, Bombardier is well-positioned to pursue growth and navigate future industry challenges.
Photo Credit: Bombardier
Business Aviation
NTSB Preliminary Findings on Statesville Cessna Citation Crash
NTSB details preliminary findings on the fatal Statesville Cessna Citation 550 crash with seven fatalities, including Greg Biffle.
This article is based on official releases and media briefings from the National Transportation Safety Board (NTSB).
The National Transportation Safety Board (NTSB) has released initial findings and visual assets regarding the fatal crash of a Cessna Citation 550 business jet in Statesville, North Carolina. The accident, which occurred on December 18, 2025, resulted in the deaths of all seven occupants, including former NASCAR driver Greg Biffle and members of his family.
According to official updates from the agency, investigators have recovered the Cockpit Voice Recorder (CVR) and identified key details regarding the aircraft’s final moments. The NTSB has also made high-resolution photos and b-roll footage of the accident site available to the public as part of their transparency efforts during the ongoing investigation (Case ID: WPR26MA063).
The aircraft, identified by registration N257BW, departed Statesville Regional Airport (SVH) at approximately 10:05 AM EST, bound for Sarasota-Bradenton (SRQ). NTSB investigators report that roughly 10 minutes after takeoff, the pilot initiated a return to the airport, executing a left turn to align with Runway 28.
During media briefings, NTSB officials revealed a critical piece of communication sent from inside the cabin. A passenger on board sent a text message to a family member shortly before impact.
“Emergency landing.”
, Text message sent by a passenger, confirmed by NTSB officials
The crash sequence ended when the aircraft struck approach lighting stanchions approximately 1,800 feet short of the runway threshold. Following the initial impact, the jet collided with trees and the airport perimeter fence before coming to rest and catching fire. The debris field suggests the aircraft was configured for landing with landing gear down and flaps set, indicating it was “stable on approach” but flying too low.
NTSB Board Member Michael Graham and Investigator-in-Charge Dan Baker provided updates on the physical evidence recovered from the site. While the aircraft sustained extensive fire damage, investigators have identified the engines and flight control surfaces within the wreckage. The Cockpit Voice Recorder (CVR) has been successfully recovered and transported to the NTSB laboratory in Washington, D.C., for analysis. Officials noted that the aircraft was not equipped with a Flight Data Recorder (FDR), as it was not required by regulation for this specific airframe, which was manufactured in 1981.
At the time of the accident (approximately 10:15 AM EST), weather conditions at Statesville Regional Airport included low clouds, mist, and drizzle. Visibility was reported to be approximately 3 to 5 miles. These environmental factors will be a key component of the ongoing inquiry.
To maintain transparency, the NTSB has published a collection of visual assets on the investigation’s official webpage. These materials include:
All future updates, including the preliminary report (expected within 30 days), the public docket, and the final report, will be posted to the same location.
The absence of a Flight Data Recorder (FDR) on older business jets like this 1981 Cessna Citation 550 is not uncommon, but it places significantly more weight on the Cockpit Voice Recorder (CVR) and physical site analysis. Without digital flight data parameters, investigators must rely heavily on audio cues, radar tracks, and the physical position of actuators and switches in the wreckage to reconstruct the flight path. The fact that the aircraft was “stable on approach” but 1,800 feet short suggests a focus on altitude awareness, altimeter settings, or visual illusions caused by the reported mist and low clouds.
Who were the victims of the crash? When will the cause of the crash be determined? Was the airport controlled? Where can I view the photos and b-roll?
NTSB Releases Preliminary Findings on Statesville Cessna Citation Crash
Crash Sequence and “Emergency Landing” Communication
Investigation Status and Site Analysis
Recorder Recovery
Weather Factors
Visual Assets and Public Docket
AirPro News Analysis
Frequently Asked Questions
Authorities have confirmed seven fatalities. The victims include Greg Biffle, his wife Cristina, daughter Emma, son Ryder, pilot Dennis Dutton, Jack Dutton, and Craig Wadsworth.
The NTSB typically releases a preliminary report within 30 days of the accident, which contains factual information but no probable cause. A final report, including the probable cause, usually takes 12 to 24 months to complete.
No. Statesville Regional Airport is a non-towered airport. Pilots use a Common Traffic Advisory Frequency (CTAF) to coordinate their movements.
The NTSB has hosted all visual assets on their official investigation webpage linked below.Sources
Photo Credit: NTSB
Business Aviation
Honda Aircraft Introduces APMG S Upgrade for Legacy HondaJets
Honda Aircraft offers the APMG S retrofit for Classic and APMG HondaJets, enhancing payload, avionics, and safety with FAA certified upgrades.
This article is based on an official press release from Honda Aircraft Company.
Honda Aircraft Company has officially introduced the “APMG S” upgrade package, a new retrofit program designed to modernize the manufacturers‘ earlier aircraft models. Announced as the fleet approaches its tenth anniversary, this initiative allows owners of the original HondaJet (Classic) and the HondaJet APMG to install advanced avionics and performance features that were previously exclusive to the newer HondaJet Elite S model.
According to the company’s announcement, the upgrade is available immediately for installation at the Honda Aircraft Company Service Center in Greensboro, North Carolina, as well as through its authorized service center network. The package has already received Federal Aviation Administration (FAA) certification for U.S.-registered aircraft, with certification from other international regulatory bodies planned to follow.
The APMG S package focuses on bridging the gap between the earliest iterations of the HondaJet and the current production standards. The upgrade targets three primary areas: payload capacity, avionics processing, and pilot handling.
Increased Maximum Takeoff Weight (MTOW) Avionics and Safety Systems Additionally, the upgrade introduces a new graphical interface for Weight and Balance calculations on the flight deck, streamlining pre-flight preparations for pilots.
The introduction of the APMG S appears to be a move to protect the longevity and residual value of the HondaJet fleet. By offering a pathway for early adopters to upgrade their airframes to “Elite S” standards, the manufacturer is ensuring that older models remain competitive in the Very Light Jet (VLJ) market. In the official press release, Amod Kelkar, Chief Commercial Officer of Honda Aircraft Company, emphasized the company’s dedication to its existing customer base:
“As we approach the tenth anniversary of our first HondaJet delivery, we are excited to provide our customers the opportunity to upgrade their aircraft with the advanced technology and performance of more recent iterations. The APMG S package brings the spirit of continuous improvement to our in-service fleet, ensuring that the HondaJet remains at the forefront of the light jet category.”
While the official release focuses on technical specifications, the strategic timing of this announcement is notable. The first HondaJet “Classic” models were delivered between 2015 and 2018. As these airframes approach the decade mark, they face potential obsolescence when compared to newer entrants like the Cessna Citation M2 Gen2 or the Embraer Phenom 100EV.
By offering a retrofit option rather than forcing customers to purchase a new aircraft to gain these capabilities, Honda is likely aiming to prevent customer defection to competitors. This strategy aligns with a broader industry trend toward sustainability and lifecycle extension, where “retrofitting” is viewed as a more environmentally and financially responsible alternative to scrapping or replacing airframes. While specific pricing was not disclosed in the release, owners are directed to contact service centers for quotes, historical data suggests such upgrades offer a cost-effective alternative to trading up to a new $6 million-plus aircraft.
Honda Aircraft Company has confirmed that the APMG S package is available for installation now. The upgrade is applicable to:
Owners interested in the upgrade can schedule installation at the factory service center in Greensboro, NC, or at authorized facilities worldwide. While FAA certification is complete, European operators and those in other jurisdictions will need to wait for subsequent regulatory approvals, which the company states are currently in planning.
Honda Aircraft Company Unveils APMG S Upgrade for Legacy HondaJet Fleet
Technical Enhancements and Performance Gains
One of the most significant operational changes included in the package is a 300-pound increase in Maximum Takeoff Weight (MTOW). In practical terms, this allows operators to carry approximately one additional passenger or significantly more fuel and baggage without compromising range. The company states that this upgrade directly addresses the evolving mission requirements of current owners.
The retrofit includes both hardware and software updates to the Garmin G3000 avionics suite. These updates are designed to deliver faster processing speeds and enable advanced flight deck features. A key safety addition is the Advanced Steering Augmentation System (ASAS). According to Honda Aircraft Company, ASAS is engineered to reduce pilot workload and enhance safety during the landing rollout, particularly in challenging crosswind conditions.
Strategic Commitment to the Fleet
AirPro News Analysis
Availability and Implementation
Sources
Photo Credit: HondaJet
Business Aviation
PlaneSense and CaptainJet Partner to Expand Private Jet Access Across Continents
PlaneSense partners with CaptainJet, enabling reciprocal private flight access with Pilatus aircraft across the US, Europe, Canada, and the Caribbean.
This article is based on an official press release from PlaneSense, Inc. and CaptainJet.
PlaneSense, Inc., a leading fractional aircraft ownership program based in the United States, has announced a significant expansion of its international service capabilities through a new collaboration with CaptainJet, a European luxury charter sourcing provider. Announced on December 16, 2025, this partnership aims to provide seamless, reciprocal private travel solutions for clients on both sides of the Atlantic.
According to the official press release, the agreement allows PlaneSense shareowners to access a vast network of charter aircraft when traveling within Europe. Conversely, CaptainJet clients visiting the United States, Canada, and the Caribbean will gain access to the PlaneSense fleet, which consists of the Pilatus PC-12 turboprop and the Pilatus PC-24 jet. This move solidifies a growing alliance between PlaneSense and the broader Jetfly Group, CaptainJet’s affiliate, following an earlier partnership established in 2025.
The core of this collaboration is a reciprocal service agreement designed to simplify the complexities of international private aviation. For PlaneSense shareowners, the company has integrated a “PlaneSense Sourcing Solution” team that will coordinate directly with CaptainJet. This arrangement provides U.S. clients with access to CaptainJet’s network, which includes over 7,000 aircraft globally, ensuring availability even during high-demand periods in Europe.
For European travelers, the partnerships opens the door to the PlaneSense fleet. CaptainJet clients can now book flights on the Pilatus PC-12 and PC-24 aircraft operated by PlaneSense. These aircraft are renowned for their short-field performance, allowing access to smaller regional airports that are often closer to final destinations than major hubs.
This collaboration builds upon a previous agreement between PlaneSense and Jetfly, a European fractional operator and affiliate of CaptainJet. Both PlaneSense and Jetfly utilize fleets heavily focused on Pilatus aircraft. By partnering with CaptainJet, PlaneSense extends its reach beyond the specific fractional fleet of Jetfly, offering its owners a broader range of charter options to suit various mission profiles that might fall outside the scope of the fractional fleet.
Leadership from both organizations emphasized the client-focused nature of the deal, highlighting the demand for a unified booking experience across continents.
George Antoniadis, President and CEO of PlaneSense, Inc., stated in the press release: “Working with the CaptainJet team allows us to greatly expand our footprint and assist our valued clients with their global travel needs.”
Yves Roch, CEO of CaptainJet, echoed these sentiments, noting the quality of the U.S. operator’s fleet:
“We’re proud to collaborate with PlaneSense, providing clients with exceptional private flights on both sides of the Atlantic.”
The Asset-Light Expansion Model The Short-Runway Niche 2025 Industry Trends What aircraft will PlaneSense clients fly on in Europe? Can CaptainJet clients fly the PC-12 in the US? Is this a merger?
PlaneSense and CaptainJet Launch Strategic Transatlantic Collaboration
Reciprocal Access for Global Travelers
Strengthening the “Pilatus Alliance”
Executive Commentary
Strategic Market Context
AirPro News Analysis
This collaboration represents a distinct strategic approach compared to other major players in the private-jets sector. While competitors such as NetJets and Flexjet have pursued “organic expansion” or “acquisition” models, spending significant capital to buy aircraft and obtain operating certificates in Europe, PlaneSense is effectively building a virtual global fleet. By partnering with CaptainJet and Jetfly, PlaneSense secures immediate European market access without the heavy infrastructure investment required to establish a standalone European division.
A critical differentiator for this alliance is the specific capability of the aircraft involved. Both PlaneSense and the Jetfly Group specialize in Pilatus aircraft (PC-12 and PC-24). These aircraft possess unique short-field capabilities, allowing them to land on runways as short as 3,000 feet, including grass and dirt strips. This opens up access to exclusive destinations, such as Courchevel in the French Alps or smaller Caribbean islands, that are inaccessible to the larger jets typically flown by competitors like VistaJet or Wheels Up. This “adventure access” segment remains a defensible niche that this partnership strengthens.
The timing of this deal aligns with broader 2025 trends where high-net-worth individuals increasingly demand “one-call” solutions. The post-pandemic travel boom has occasionally strained charter inventory; by aligning with a major sourcing agent like CaptainJet, PlaneSense mitigates the risk of inventory shortages for its clients abroad. This ensures that U.S. owners are not left to navigate a fragmented European charter broker market on their own.
Frequently Asked Questions
Through CaptainJet, PlaneSense clients will have access to a sourcing network of over 7,000 aircraft, ranging from light jets to large-cabin aircraft, in addition to the Pilatus fleet available through the Jetfly affiliate partnership.
Yes. The agreement specifically allows CaptainJet clients to book flights on the PlaneSense fleet, which includes the Pilatus PC-12 turboprop and the PC-24 light jet, known for their versatility and short-runway performance.
No. This is a strategic collaboration between two independent companies. PlaneSense remains a privately held U.S. company, while CaptainJet operates as a Swiss-based charter sourcing provider affiliated with the Jetfly Group.
Sources
Photo Credit: PlaneSense
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